The
chances of new international telecom operators in the auction for 3G/4G
spectrum are going high after Turk Cell, Saudi Telecom Company (STC) have also
arrived to study its business case and to assess market condition, it is
learnt. Well-placed sources told Business Recorder that a two-member delegation
of STC has reached the country and met Chairman Pakistan Telecomm-unication
Authority (PTA) Syed Ismail Shah where queries about market, broadband services
and opportunities for new entrants were made.
Chairman
PTA briefed the delegation about the revised Information Memorandum (IM) for
3G/4G auction. Sources said the delegation is currently in the country and
would meet State Minister for Information Technology (IT) Anusha Rehman and
other high-ups next week and would file a report to their Board of Directors. A
delegation of Turkish mobile phone operator Turk Cell also visited the country
last week to study its business case regarding the spectrum auction.
Prime
Minister Nawaz Sharif has approved the final policy directive on Monday last
and the PTA has published revised IM according to which interested operators
can submit their application and sealed bid for participation along with
pre-bid deposits by April 14, 2014. The auction would be held on April 23, 2014
to mobilise over $1.5 billion non-tax revenue. There are three 3G (in 2100 MHz)
and two 4G (in 1800 MHz) licenses to be auctioned through two-stage bidding.
One 15 MHz spectrum from 850 MHz band will be allotted if any new operator gets
the license.
According
to the policy directives, the base prices are set as (i) $295 million for 10MHz
paired spectrum in 1.9/2.1GHz frequency band (ii) $210 million for 10MHz paired
spectrum in 1800 MHz frequency band (iii) $291 million for 7.38MHz paired
spectrum in 850MHz frequency band. The inclusion of 1800MHz band was
exclusively done to catalyse the deployment of 4G in Pakistan. Spectrum in
850MHz will give incentive for new entrants in Pakistan and will certainly
foster competition.